BMA799 Strategic Management

The purpose of this report is to discuss about the strategic management of Hilton Worldwide. The strategic management of a company is associated with ongoing planning, monitoring, and analysis of its needs in order to achieve the goals and objectives successfully. There are various changes in business environment that create challenges in business operations of a company effectively. At this stage, the strategic management is considered on the priority basis to face the challenges and achieve the goals of the company. The strategic management helps the company to make effective plan to tackle against changes in the market successfully.

Strategic Management of Organizations:

The strategic management is generally defined as the process of setting goals of a company with procedures of business operations to make the company more competitive in the market. In strategic management, deploying staff and resources are considered main factors to support the planning of a company to achieve its goals. The strategic evaluation and internal organizational analysis are important parts of strategic management to make the organization competitive (Kaplan &Norton, 2005). A strong strategic management of an organization assures effective execution of strategy across the business operations because of availability of different skills and resources. In strategic management, an organization generally considers five stages of process in a business plan to take competitive advantage successfully.

The five stages of strategic management process can be identified as the setting goals of the company, analysis of internal environment, formation of strategy, and strategy implementation, as well as its monitoring. It can be determined that strategic management process always guides top-level programs and decisions of the management for effective execution and valuable results (Kaplan &Norton, 2005). At this stage, any size of companies in the market gets advantage with the practice of strategic management. Therefore, in order to get overall direction in the market to achieve competitive advantage by developing plans and policies, strategic management is necessarily employed. Strategic management assists in effective designing of plan and achieving goals in which the allocation of resources are implemented with effective plans.

Background of Hilton Worldwide:

Hilton Worldwide Holdings Inc. is an American based multinational hospitality company that runs its business in the market with a broad portfolio of hotels and resorts franchises. Formerly, Hilton Worldwide was known as Hotels Corporation. This company was established in May 1919 by Conrad Hilton. The CEO of this company Christopher J. Nassetta appointed in 2007. Currently, its total revenue is around $4.31 billion that make this company a strong competitor in the global market. This company has around 584 Hilton Hotels & Resorts properties at the global level (Hilton, 2022).

Strategic Management Strategies of Hilton:

The success s of Hilton Worldwide is based on its effective strategic management executed in the global market and achieves a specific position with competitive advantage. The strategic management of this company is based on aggressive yield management strategies. In these strategies, it integrated the commercial focus approach in the market with sales, revenue, Ecommerce and marketing. In the strategic management strategies of Hilton, it has centralized and collaborative methods considered in the strategic management in which it first gather a deeper understanding of the hotel and community and conduct a consistent development in business operations (Hilton, 2022). Further, a cohesive strategy is also employed to target more new customers at the global level in which constant communication and setting clear revenue responsibilities and accountability are considered in every department, such as marketing, revenue management, marketing and operations departments, etc for internal marketing organization.

In the aggressive yield management strategies of the Hilton Worldwide help in driving business because of engaging more local community with its Hilton Spirit culture team. Additionally, this company extends its reach at the local level to learn the needs and expectations of the people. The main competitors of this company at the global level can be identified as Marriott Hotels, Hyat, The Ritz Carlto, etc. However, it has achieved a strategic competitive advantage in the global market with huge revenue. In strategic management strategies of Hilton Worldwide, it manages its resources on the priority basis that can be seen as buildings, departments, cars, facilities, products, and data bases (Hilton, 2022). These resources increase the capabilities of the company and help to achieve competitive advantage.

In strategic management strategies of Hilton, the competencies are use by this company to help to do well in the market. The competencies play essential role to establish efficiency, productivity, service flexibility and market that provide competitive advantage to Hilton. Further, the capabilities of Hilton in the context of financial management also make it a successful hospitality company in the world because of its potential earnings. The contribution of its different stakeholders in the market, such as employees, partners, managers, suppliers, buyers and directors has provided strategic advantage more than its rival companies (Ahsan et al., 2014). In strategic management strategies, Hilton manages thousands of employees at the global level through which it provides exception services to the customers. It also alliance with partners to manage it services effectively and satisfy the needs of the customers and clients.

Furthermore, Hilton Worldwide strategic management strategies can also be seen as enhancing brand image at the global level and maintaining customer loyalty to increase a strong base of customers. The use of strong leadership of the company and conducting multi-branding ate also considered by Hilton in its strategic management strategis. It always adds new hotels to its business system to continue its revenue and improve its financial strengths (Ahsan et al., 2014). Moreover, the strategic management strategies of this company can also be identified as delivering exceptional guest experience and managing team players to achieve the goals effectively and efficiently. The actions and decisions of the management provide a strong base to operate the business with a sense of urgency and discipline.

It also manages its corporate culture on the priority basis because it has diverse workforce at the global level. Increasing understanding among employees to respect global culture ensures strong motivation level and increasing value of each staff that belongs to different nationalities and culture. The management of human resource of this company is related to strategic management strategies in which right people is also acceptable in the company for right business operations (Ahsan et al., 2014). In marketing strategy of this company, it provides services to the customers guaranteed lowest price to attract customers more than competitors. The Hilton Worldwide promotes its products and services using public relations first using social media sites effectively.

In strategic management strategies of the company, strategic accountant management is considered to negotiate customization deals with customers and drive profits with stronger and more committed relationships. Hilton Worldwide always follows environmental laws and governmental regulations in order to be a volatile company in the world. The reduction strategy of the company is related to budgets and spending to make it more profitable. It has prepared itself to face the challenges of natural disasters (Ahsan et al., 2014). The strong intellectual capital of the company and promoting a positive consumer perception of brand image are also effective strategic management to take competitive advantage in the global market.

Conclusion:

After discussion on the strategic management of Hilton Worldwide, it can be concluded that it is the process of setting goals of a company with procedures of business operations to make the company more competitive in the market. In strategic management, deploying staff and resources are considered main factors to support the planning of a company to achieve its goals. The aggressive yield management strategies of the Hilton Worldwide help in driving business because of engaging more local community with its Hilton Spirit culture team.

References

Ahsan, Lubna, ………, Shahabuddin (2014). Strategic Management of Multinational Companies: Case of Hilton. Retrieved from: https://mpra.ub.uni-muenchen.de/58366/1/MPRA_paper_58366.pdf

Hilton. (2022). STRATEGIC REPOSITIONING. Retrieved from: https://managementservices.hilton.com/en/why-choose-us/success-stories/strategic-repositioning/

Kaplan, R.S. &Norton, D.P. (2005). The Office of Strategy Management. Retrieved from: https://hbr.org/2005/10/the-office-of-strategy-management